6 companies with ROE above 10% across all sectors

Return on equity (ROE) is one of the most closely watched indicators of business quality. The 10% threshold is not particularly high in itself, but the ability to sustain it over the long term and across the entire economic cycle distinguishes truly high-quality companies from those that are merely riding the wave of cheap capital. Today’s selection shows how differently a double-digit ROE can be achieved—from a bank to a conglomerate and a health insurance company, all the way to a chip designer, a pharmaceutical giant, and an arms manufacturer.

ROE measures how effectively a company converts shareholders’ capital into profit. If it stays above 10% over the long term, it usually signals a business with above-average profitability or a structural competitive advantage. The problem is that the same number can mean something completely different across various sectors. For banks, it is significantly boosted by financial leverage; for companies with aggressive share buybacks, it is driven…